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15.03.2007
Upcoming bond issue by «Veter Aprelya» LLC assigned uaB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB long-term credit rating to the upcoming issue of registered housing bonds (A series) by Crimea-based "Veter Aprelya" LLC ("the Issuer" or "the company") for the amount of UAH 5.7m with the 1 1/2-year original maturity. Today the company finances construction of hellings for small vessels in the borough of Ordzhonikidze (Crimea). In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2004-2005 and 9M2006 as well as other inside information furnished by the company.
The uaB issue rating reflects higher default possibility than of the uaBB rating, though in this case the obligor`s capacity is adequate to pay its obligations in the Ukrainian financial market environment. This debt liability is more affected by the adverse changes in business, financial and economic conditions than debt liabilities with higher ratings. That may negatively affect the obligor`s capacity and willingness to fully and timely pay interest and principal on obligations.
Factors maintaining the credit rating
- The planned bond issue is to be redeemed by hellings in the borough of Ordzhonikidze, with the Issuer being co-investor of the project. All necessary permitting and construction documents on the project are arranged.
- The project is being also implemented by co-investor "Ukrsotsstroy" LLC and by general contractor "Stroybat" LLC, which have experience in construction (having set in operation 5.8K sq.m.) and in bonds` redemption.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds` redemption.
- The project is currently on the initial stage.
- The planned issue size 126x exceeds Issuer`s asset balance as of 30 Sep. 2006 (the
issue size is UAH 5.7m, with the asset balance amounting to
UAH 44.9K) - Volatility in legislation and taxation on operations connected with construction and with attraction of funding.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
